A new study that looks at our emotional relationship to money and how banks can capitalize on this, published by Cognizant (based on research conducted by Cognizant and ReD Associates), advises banks to better understand their customers’ relationship to money and focus on where those needs are not being met. Excerpts:
“Philippe Dintrans agrees that ‘the profusion of products and services being offered certainly add to the stress.’ But he points out that fintechs have been more successful in providing solutions for what he calls, ‘quick money.’ Quick money is the type of payments you make every day — paying the bills and buying the groceries. ‘Slow money,’ in contrast, is the kind of planned money transactions you make, be it retirement, college, or home buying. Fintechs, like Mint or Acorn, he says, have moved the dial for providing better quick money solutions.
‘The least digital progress has been made for the types of money that require the most assistance,’ says the study. The opportunity for banks and fintech is to look towards helping customers with more personalized experiences.
AI and other emerging technologies from both fintechs and traditional banks will make a more personalized environment for saving and investing, but the gig economy, health insurance uncertainties will continue to add a level of stress to slow money savings.”
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